Jewelry

June Hong Kong Jewelry Fair Survives Trade Wars And Protests - Forbes

The 2018 September Hong Kong Jewellery & Gem Fair had to contend with a super typhoon that closed the massive jewelry trade show for a day for the first time in its 36-year history. Its sister show, the recently concluded 2019 June Hong Kong Jewellery & Gem Fair, had to deal with two different storms that were both man-made.

The first was the threat by U.S. President Donald Trump to impose 25% tariffs on an additional $300 billion in Chinese imports, which would almost certainly include jewels, gems and jewelry making equipment from China. This would have not only disrupted the fair but had the potential to adversely impact the entire jewelry industry in China.

The second storm came in the form of ongoing mass protests in the city against the Chinese government that wants to impose a highly controversial plan to allow extraditions to mainland China. On June 16, before the fair began, an estimated two million people joined a demonstration against the proposed law, an unprecedented number in a city of seven million people.

It turned out that both potential storms did not interfere with the jewelry trade show, held June 20 – 23. There was a protest on June 22 but it was smaller and more targeted taking place about two miles away from the Hong Kong Convention and Exposition Centre. Outside of a few street closures, there was no disruption to the fair. About a week after the fair, Trump announced that he agreed to indefinitely suspend his tariff threat (for now).

Leaders of Hong Kong and China trade organizations had a lot to say about the first issue and had nothing to say about the second, during the opening day press conference.

Lawrence Ma, president of the Diamond Federation of Hong Kong, says U.S.-China trade tensions are putting pressure on the world economy.

“Trade uncertainty is what we don’t like,” he said at the time. “If they agree to something everything would change in a moment. But I think we have to live with this uncertainty for the next few months.”

Sze Ho Yin, president of the Hong Kong Pearl Association said the increased infrastructure improvements (which includes new train service and a new bridge) between Hong Kong and China have made it easy for Hong Kong wholesalers and retailers to do business with those from the mainland.

“About 40% of our buyers are from Mainland China because it is very convenient for buyers from China to come to Hong Kong,” he said. “They are pretty much supporting the jewelry industry (in Hong Kong). It’s very convenient to sell directly to China. Because of this, the trade war between the U.S. and China hasn’t had a dramatic effect.”

Ken Lo, chairman of the Hong Kong Jade & Jewellery Manufacturers, says Hong Kong’s strength as a trading center will mitigate much of the detrimental impact of the trade war (which is still ongoing as the U.S. has not removed $250 million in tariffs for certain goods made in China).

“Hong Kong is the number one city in the world in terms of ease when it comes to setting up a business,” he said. “And it has an advantage because of its proximity to China and its ease of trade between the two markets. I think because of this Hong Kong will remain a very important trading center for the entire world.”

The June fair is smaller than the September fair, which is arguably the largest jewelry trade fair in the world. However, it is still quite large, as the 2019 edition occupied 753,473 square feet of exhibition space at the Hong Kong Convention & Exposition Centre and attracted 1,900 exhibitors from 40 countries and regions of the world. Both trade shows are owned and operated by London-based Informa Markets, a trade show and publications company that acquired UBM Asia (the previous owner) in 2018.

The first two days of the four-day fair saw large crowds while by the third day there were fewer buyers. Exhibitors, new and returning, were mostly happy with the turnout and the business that was conducted.

The diversity of those exhibiting was on full display. For example, Jadmily, a company based in Taipei, Taiwan, and its owner, Angel Chan, are on a mission to educate and create demand among western jewelry consumers for high-quality jadeite, a gem that is prized in Asian cultures but is unappreciated in the west. It’s not an easy job as others have tried before.

“We want to show the western world the benefits and beauty of jade,” Chan said through an interpreter. “We want to teach them how to invest in jade.”

This is the second time the company has exhibited at the June fair. The first time they were in a country-specific pavilion. This year Chan purchased a booth in an area knlwn as the “Grand Hall” where high jewelry firms and dealers in vintage jewels and important gems exhibit and she said it’s a more appropriate environment to show her one-of-a-kind jade jewels. All of the jadeite is sourced in Burma.

Exhibiting nearby, a family-owned company, Htay Paing, specializes in jewels made of rare and important Burma rubies from a mine they own. Among the pieces on display were several gold and diamond necklaces featuring well-matched Burmese rubies.

Contemporary high jewelry designer, Alexander Laut, was at the fair for the first time in the Grand Hall. Dhiraj Kapoor, a partner and gem supplier for Alexander Laut said the fair provides access to Chinese collectors and people from around the world. He said on the second day they made several sales. “That’s why we chose the Grand Hall,” he said. “We’re getting good clients.”

The pieces on display ranged from rare Kashmir sapphires and important spinels in clean, modern settings to whimsical pieces with lots of movement. Kapoor said he and Laut already signed up for the September fair.

Italian jeweler, Giovanni Ferraris, is a longtime exhibitor of both the June and September fairs, and considers them among the most important jewelry events in the world. Among his colorful gem-set creations were several pieces made of titanium.

Awards were also a part of the June Hong Kong fair. For example, the JNA Awards, one of the top awards programs in the jewelry industry, announced its 39 finalists across 11 categories during an opening day event. For the eighth edition of the prestigious awards, the number of honorees was expanded to reflect the increased number of applicants and their diversity as the program received approximately 100 entries from more than 60 companies and individuals. The categories for technology and young entrepreneurs received the most entries and the number of finalists in those categories was increased to reflect this.

“Of the 39 honoree companies that were shortlisted, almost half of them are first-time entrants, indicating a growing interest among quality companies who recognize the importance of this platform,” said Letitia Chow, chairperson and founder of the JNA Awards, and director of Business Development -- Jewellery Group at Informa Markets.

“The quality of this year's entries, along with its diversity in terms of size, type and geography, are worth noting. Despite facing challenges, the industry -- through these entries -- showed its focus and determination when it comes to investing in innovation, operating systems and consumer research," added, James Courage, a longtime member of the jury.

The winners will be announced at a gala dinner and awards program during the September Hong Kong Jewellery & Gem Fair.

The fair also announced the winners of the inaugural JNA Jewellery Design Competition, which celebrates artistry, innovation and excellence in jewelry design and production. The winners were selected out of 15 finalists across three categories and are as follows:

* Dancing Stone Category – New Fashion Tech - “Heptagram” by Mami Ochiai of Japan

* Platinum Category – Platinum Attitude - “Star Lingers” by Liang Fan of China

* Tahitian Pearl Category – Asymmetric Perfection - “The Leonidas Man” set by Alessio Boschi of Italy

Each winner will receive a cash prize of $2,000, and have their creations showcased at the September Hong Kong Jewellery & Gem Fair.